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Apple Drops 2nm Chips from iPhone 17 Pro Models Due to TSMC’s Rising Costs and Limited Production Capacity

Apple Drops 2nm Chips from iPhone 17 Pro Models Due to TSMC’s Rising Costs and Limited Production Capacity

Apple has made significant strides with its custom silicon, especially the A-series chips, which are recognized for their top-tier performance in the tech industry. Currently, the A18 and A18 Pro models leverage TSMC’s advanced 3nm manufacturing process. However, there were initial plans for these chips to transition to a 2nm node. Reports have emerged that while Apple hoped to implement this cutting-edge technology in the upcoming iPhone 17 Pro models, unforeseen challenges have led the company to reconsider its approach.

Delay in Adoption of TSMC’s 2nm Chips for iPhone 17 Pro

Recent media sources, including MyDrivers, indicate that Apple has decided to postpone the integration of TSMC’s 2nm chips in the iPhone 17 Pro and iPhone 17 Pro Max. This commercial launch has now been rescheduled for 2026. The delay stems from increased manufacturing costs and a limited production capability associated with the new chips. Although TSMC has commenced trial production, early results have fallen short of expectations, implying that it would take some time before a viable product could emerge.

The trial production took place at TSMC’s Hsinchu facility in Taiwan. Reports suggest that the yield rate is approximately 60%, indicating that nearly 40% of the chips produced are defective. With the production cost for each wafer reaching around $30,000, incorporating these 2nm chips into the soon-to-be-released iPhone 17 Pro models appears financially impractical for Apple.

As a result of these complications, Apple has opted to delay the launch of the 2nm chips by nearly a year. The new timeline pushes the expected availability of these chips to coincide with the iPhone 18 Pro model in 2026, meaning that the current iPhone 17 series will continue to utilize TSMC’s existing 3nm chips. It’s worth noting that the latest iPhone 16 series already employs TSMC’s 3nm technology. While advancements in the A19 Pro chips are anticipated, the eventual introduction of 2nm chips is expected to yield substantial performance enhancements and improved energy efficiency.

Despite the production hurdles, TSMC highlighted at the 2024 IEDM conference that the 2nm chips are projected to feature up to 15% more transistors than their 3nm counterparts, potentially increasing performance by a similar margin while maintaining consistent power consumption levels. The decision to delay the rollout of the 2nm chips reflects Apple’s strategy to balance innovation with cost-effectiveness, ensuring that pricing for its devices remains competitive. Stay tuned for further updates on this evolving situation.

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